Business, 04.01.2021 02:10 Aestheticblue
Charley Davison Inc. produced 10,000 motorcycles last year and sold 9,000 of them each for $18,000/bike. Variable cost was $13,000/bike. Fixed cost was $25 million and it had no debt. Assume no profits tax. It paid out all profits as dividends. Which of the following are true?
a. Profits = $20 million
b. Profits = $25 milion
c. Piotits-513 million loss)
d. Change in cash= -S20 million
e. Change in cash= -$25 million
f. Change in cash =- $13 million
Answers: 1
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